Spring homebuying season started heating up in March, according to data from the Houston Association of REALTORS®.

The association’s latest Market Update shows that home sales increased 2.6% year over year last month, with 8,753 closings. That’s the highest sales volume since July 2024. Pending sales, meanwhile, rose 12.7%.

Active inventory expanded as well, with a total of 32,866 properties on the market — the highest quantity since June 2011.

That increase in inventory — as well as a decrease in mortgage rates — likely gave buyers the courage to enter the market despite uncertainty about the economy.

“Lower mortgage rates are giving Houston homebuyers a sense of optimism, but many are still proceeding with caution,” HAR Chair Shae Cottar said in a press release, adding that tariffs have put downward pressure on interest rates. “These lower rates, coupled with growing inventory and moderating home prices, create an opportunity for both buyers and sellers.”

Luxury activity surged in March, with homes in the $1 million-plus segment making up 26.9% of all transactions. That sent the median home price up 1.5% year over year to $335,000 and the average up 3.7% year over year to $427,221.